2017 (10) TMI 1684

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....ard the parties and perused the record. The assessee company is in life insurance business. During the year under consideration, the assessee had made investment of Rs. 10246.11 crores and earned dividend income of Rs. 160.00 crores. The assessee claimed dividend income as exempt u/s. 10(38) of the Act. The Assessing Officer noticed that the auditors have quantified the disallowance to be made u/s. 14A read with Rule 8D at Rs. 51.84 crores. However, the assessee did not disallow the same while computing its total income on the plea that its income is being computed under section 44 of the Income Tax Act, 1961 read with Part-A of the First Schedule. The assessee placed reliance on the decisions rendered by Mumbai ITAT in the case of ICICI Pr....

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....licable to insurance companies, the assessee filed revised return of income on 29th March 2013, withdrawing the disallowance made under section 14A thereby claiming loss of Rs. 711,88,77,953. The Assessing Officer, however, while completing the assessment did not accept the claim of the assessee on the reasoning that the Department has not accepted the decision of the Tribunal and filed appeal before the High Court. Being aggrieved of the disallowance made under section 14A r/ w rule 8D, assessee preferred appeal before the first appellate authority. 4. The learned Commissioner (Appeals), after considering the submissions of the assessee in the light of the decisions of the Tribunal placed before him found that the issue is squarel....

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....r dated 26.2.2010; ix) Bajaj Alliance General Insurance Co. Ltd. v/ s ACIT, 130 TTJ 398, order dated 31.8.2009; and x) Oriental Insurance Co. Ltd. v/s ACIT, 40 SOT 19, order dated 27.2.2009. 7. We have considered the submissions of the parties and perused the material available on record in the light of the decisions cited before us. Undisputedly, the assessee is engaged in the business of life insurance. The Assessing Officer himself in the assessment order has observed that profits of the assessee has to be computed in terms of section 44 r/ w rule 2 of the First Schedule to the Income Tax Act, 1961. We have noted, the Tribunal in a series of decisions, as referred to above, has clearly and categorically held th....